Housing affordability of different income groups in turkey: regional comparison

Aksoy, Esma
Housing affordability has been a major topic of interest both for researchers and policy makers in many countries. However, in the Turkish case, research on housing affordability is scarce. The problem of housing has usually been considered as a quantitative deficiency problem in Turkey, and for many decades any other dimension of the problem is neglected. Increasing the housing stock in numbers has always been given priority by the Turkish governments. This tendency to support new housing production has continued in the 2000s. Currently, the issue of housing affordability becomes a relevant topic of research and policy than ever in the Turkish context owing to the negative effects of policies adopted after 2002 on the lowest and low-income households’ housing affordability. This study, considering the housing affordability as a gradually worsening problem in the Turkish cities, has two major arguments: Increased housing production in the country did not contribute to the housing affordability of low-income households, and the extent of the housing affordability problem displays differences in different housing markets. In this context, this study empirically examines the housing affordability of households with respect to mode of tenure, household income, and TR Level-1 regions. Findings of the study reveal that the extent of the housing affordability problem in Turkey differs with respect to tenure modes, income, and regions. For all income categories, tenants are devoting more of their income for housing expenditures compared to owner-occupiers. Among owner-occupiers, it is the lowest and low income households who experience housing affordability problems. For all households in the lowest income category, housing affordability is a problem that prevents them to maintain their minimum standards of life. However, the most compelled group is the lowest income tenants in TR1 region (İstanbul). Furthermore, changes in affordability rates display that increased housing supply did not affect the lowest income tenants positively in any TR regions of Turkey. The major conclusion of the study is that housing policies which consider the whole country as a uniform housing market with standard households will eventually be unsuccessful. Housing policies, to achieve their aims, should consider the local and area based circumstances and problems. 


Financialization Of Housing And Mortgage Debt Repayment Strategies Of Households In Turkey
Suvar Aslan, Ahmet (Middle East Technical University Faculty of Architecture, 2021-12-01)
Housing is a complex phenomenon with social, economic and political dimensions. It is also an expensive fixed asset that can be used and consumed for centuries. Due to the considerable amount of capital required for the realization of housing projects, a mutually supportive relationship is established between the finance and the housing sectors. Mortgage loans are the major tools provided by financial institutions to households for acquisition of housing. On the other hand, mortgage loans usually constitute...
Understanding real estate bubbles: an analysis of the recent trends in the Turkish housing market
Karasu, Mustafa Nusret; Cömert, Hasan; Department of Economics (2015)
The main aim of this thesis is to determine whether there is a real estate bubble in Turkey recently, where the house prices are increasing rapidly. In order to do this, the thesis tries to define the bubble concept, by reviewing literature. The common view among economists is that bubbles are deviation of prices from their fundamentals which is associated with sudden increases in prices. We usually witness harsh economic crises after the bursts of bubbles in economies and this constitutes the source of the...
Housing crediting and urban development in Turkey.
Kasar, Cere; Keskinok, H. Çağatay.; Department of Urban Policy Planning and Local Governments (2019)
One of the most significant problems in developing countries relates to housing finance. Long-term housing assets are securitized during economic recessions, and the use of real estate as collateral to obtain bank credits creates fictitious growth in the economy. In the vicious circle, where most investments are made into the construction sector every year, it is the rural areas that strive to develop around the cities that suffer the most. The present study puts forward a good practice model to steer prope...
Changing economies of scale in housing production as related to supply and demand factors
Nurel, Semin; Türel, Ali; Department of City and Regional Planning (2015)
Studies investigating housing production tendencies in cities report that, due to the increase in car ownership and growing concern for healthy living environment, conventional apartment building, built on single parcels has become inadequate to meet households' housing preferences. As a result, demand for living in housing estates, which provide preferred amenities has increased. There are indications that income elasticity of housing demand has increased, implying that such housing is considered as luxury...
Güven, Aydan Ege; Özdemir Sarı, Özgül Burcu; Department of City Planning (2023-1-20)
Housing and living environment deprivation, although being a concept that cannot be agreed upon in its definition and measurement, is generally considered the accumulation of fundamental deficiencies in housing and the living environment. This thesis states that the housing supply in Turkey does not serve the needs of the households that diversify in terms of quality, therefore it is necessary to determine the deprivation levels of housing and living environment experienced by households in varying ways. Re...
Citation Formats
E. Aksoy, “Housing affordability of different income groups in turkey: regional comparison,” M.S. - Master of Science, Middle East Technical University, 2017.